What Has Been the Growth of the Virtual Humans Market So Far?
The virtual humans market has seen considerable growth due to a variety of factors.
• In recent years, the market size for virtual humans has seen tremendous growth. It is projected to escalate from a size of $34.88 billion in 2024 to $51.94 billion in 2025, boasting a compound annual growth rate (CAGR) of 48.9%.
Factors such as the growing popularity of virtual assistants and chatbots, the expansion of the metaverse, a substantial increase in digitalization, a surge in smartphone usage, and a rise in digital transformation have contributed to the significant growth during the historic period.
How Will the Virtual Humans Market?
The virtual humans market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of virtual humans is predicted to experience significant expansion in the upcoming years, with an estimated worth of $252.61 billion in 2029, growing at a CAGR of 48.5%.
The projected expansion during this period can be linked to factors such as the emergence of e-commerce, the need for tailored experiences, the growing scope of the metaverse, the rising acceptance of digital influencers, and an enhanced emphasis on the customer experience. Notable trends observed during this forecast period encompass technological evolution, the incorporation of artificial intelligence, language diversity, custom experiences, and partnerships with influencers.
Which Factors Are Boosting Growth In The Virtual Humans Market?
The quick growth of the metaverse is predicted to fuel the expansion of the virtual humans market in the future. The metaverse refers to a universal virtual space, formed by merging virtually augmented physical reality and a persistently physical virtual reality. Factors like the burgeoning interest in digital experiences, remote work and social interaction, economic prospects, and cultural changes are fueling the metaverse's growth. Virtual humans, also known as digital avatars or virtual beings, are vital in this space as they represent users, AI-powered characters, or self-sufficient entities serving certain functions. These virtual humans are crucial in sculpting the user experience in the metaverse, making digital environments more enriched, personalized, and interactive. As per the UK Intellectual Property Office in March 2024, a UK government body accountable for intellectual property rights in the UK, the Metaverse user base is set to grow rapidly, with it possibly reaching 1.4 billion users and the predicted market size sitting at $490.4 billion by 2030. Hence, the growth of the metaverse is a significant factor propelling the virtual humans market.
What Key Areas Define The Segmentation Of The Global Virtual Humans Market?
The virtual humans market covered in this report is segmented –
1) By Type: Avatars, Autonomous Virtual Humans
2) By Application: Gaming And Entertainment, Simulation And Training, Virtual Reality (VR) And Augmented Reality (AR), Customer Service And Virtual Assistants, Marketing And Advertising, Other Applications
3) By Industry Type: Banking, Financial Services And Insurance (BFSI), Education, Retail, Healthcare, Automotive, Aerospace And Military, Information Technology And Telecommunications, Gaming And Entertainment, Marketing And Advertising, Other Industries
Subsegments:
1) By Avatars: 2D Avatars, 3D Avatars, Customizable Avatars, Realistic Avatars
2) By Autonomous Virtual Humans: AI-Powered Virtual Assistants, Socially Interactive Virtual Humans, Virtual Influencers, Customer Service Virtual Humans
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What Emerging Trends Are Influencing The Growth Of The Virtual Humans Market?
Predominant businesses in the virtual humans market are concentrating on the development of technologically sophisticated solutions, such as AI-powered virtual human technologies. This is achieved through strategic alliances to improve human-computer communication, generate more authentic avatars, and broaden applications in multiple sectors. AI-powered virtual human technologies are advanced systems employing artificial intelligence to fabricate digital human models that can interact with actual humans realistically and intelligently. For example, in June 2024, Nvidia Corporation, a US-based software firm, and Aww Inc., a Japanese virtual human enterprise, collaborated to advance AI-driven virtual human technology, with particular emphasis on their virtual influencer, imma. This updated version accommodates real time interactions, augmented by NVIDIA's Audio2Face technology that offers authentic facial animations and lip-syncing. AI imma is engineered to automate the creation of character-based large language models, simplifying the creation and distribution of virtual humans for diverse business applications. This partnership poses a substantial advancement in AI-driven virtual human technology, with an objective to transform user connectivity and interaction across various industries.
Who Are the Key Players In The Virtual Humans Market?
Major companies operating in the virtual humans market are:
• Google LLC
• Samsung Electronics Co. Ltd.
• Microsoft Corporation
• Alibaba Group Holding Limited
• Meta Platforms Inc.
• NVIDIA Corporation
• iFLYTEK Co. Ltd.
• Unity Software Inc.
• Epic Games Inc.
• Xsens Technologies B.V.
• Reallusion Inc.
• Soul Machines Limited
• AltspaceVR Inc.
• Cubic Motion Limited
• Datagen Technologies Ltd.
• Inworld AI Inc.
• 3Lateral d.o.o.
• Faceware Technologies Inc.
• Offbeat Media Group LLC
• Quantum Capture Inc.
• UneeQ Limited
• VNTANA Inc.
What Is The Most Dominant Region In The Virtual Humans Market?
North America was the largest region in the virtual humans market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the virtual humans market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
